I have bad credit and 15 k cash in hand , want to finance but have a low credit score . I would be willing to pay high interest rates to repaire my credit and have my back hoe, the tractor I'm looking at is 30-35k. Does anyone know anyone on this planet that would take my 15 k and make this happen ?
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backhoe finance ?
- Thread starter adamray44
- Start date
CM1995
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Welcome to the Forums adamray44!:drinkup
I agree with monster. Talk to your local dealers, with $15K in hand changes the situation when one has a low credit score. The dealers usually have some nice used equipment in their for sale or rental fleets that they regularly sell. You might be able to get a RPO and be able to pay even more down on the machine, while earning money operating it.
I agree with monster. Talk to your local dealers, with $15K in hand changes the situation when one has a low credit score. The dealers usually have some nice used equipment in their for sale or rental fleets that they regularly sell. You might be able to get a RPO and be able to pay even more down on the machine, while earning money operating it.
Thanks for the advice . I don't want to kill my score more for applying for credit then declined . I have been turned down on auto loans . I wasn't holding 15 k either. I assume with bad credit no one is gonna loan you squat. I keep faith that maybe some out there will. I could make it 20 k in about a month. Worth the try
dpull
Well-Known Member
20k in one month? Why not rent and send the machine back when your done and pocket the money?
RTSmith
Senior Member
I believe he meant the 15 could go to 20 in one month.
I am planning to start up my business this year . The past two years I was a semi business partner . It was small but very profitable, and consistant. I want to do the tractor work and hire dump trucks and other equipment needed. I did this in the past and it worked . I now have several contacts that are calling me weekly needing me to preform . My experience concludes exotic ponds, pools , trenching ,grade , level , pads , septic and lots and lot of busting rock , 70% of the jobs I have taken have Rock and lots of it. I charged well and did well doing so . I plan to acquire my own dump trucks in the future but one step at a time. In my area and with my experience having and self running the backhoe is the most profitable direction I can begin with , I have been cutting the checks out for the hires so I feel like I have a good understanding on the profit after the expense ratio . The past work I have done and the economy in my area makes me suspect that I can purchuse the tractor then resale and profit enough to upgrade . Things can always change so I have a get out as well . Also there's nothing like the smell of fresh turned soil in the mornings .
apetad
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There are folks out there that will rent you a machine until it is paid for. May take 18 to 24 months, but since it's a rental, as long as you make the payments on time you can keep it!
CM1995
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- Running what I brung and taking what I win
I agree, big fan of RPO's. (rental purchase options). An RPO allows one to test the market and build equity in a piece of iron. Plans vary but usually 70-90% of the rental payment is applied towards purchase price of the machine. Usually at any point during the RPO period you can purchase the machine and use the rental payments as a down payment. The time limit on the RPO varies by the deal but usually 3-6 months from time of rental.
This might enable you to work the machine, make the rental payments which goes towards the purchase and then use your cash to purchase the machine. You should have a nice equity in the machine at that time.
RPO'd a 321 through the Cat rental store for 3 months and then purchased. It was a good used machine with low hours and warranty. At the time of conversion from RPO to purchase the machine had positive equity. Ran it today digging an underground storm water retention system.
apetad
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A very significant amount of our machine sales "occur by accident" as I see it. The customer originally rents for a month, then two or three or more, along comes another project and whammo Hey Man, I've got 1/4 the cost of this machine paid in rental, can we call that the down payment and buy it? "Yes Indeed" When I say "By Accident" I mean the dude had no intention to purchase at the time of delivery, but once the dollars make sense the purchase happens. There is truth in the equipment business that "whoever gets there first wins" Have had literally millions in sales on deals that started as a simple demo, turned into a short term rental, then turned into long term, then turned into sale.
The rpo sound interesting, I'm not sure about my low credit issue and the possibility on that option . I have found someone that has a 2004 cat 420 d . Doesn't have a wet kit , this is a must so I'm pricing one Total price 46k . 10 k down and finance 36 months . He says it has a new engine in the thing , I'm kind of nervouse about that he says he used to lease it out . I'm more in the market for the nice barn kept backhoe on grandpa's farm . Hard find .. tying to decide between the 420d- 416- or one of the 580s, should probably start a new thread for this topic
High Speed Dirt
Member
I have come here looking for info on my first back hoe but do have experience in the other matters.
From a finance standpoint, have you checked with any small town banks where people may know you personally? You may be able to get a business loan on some amount.
From a power standpoint, have you considered reducing or eliminating debt before buying anything? Have you considered using a lesser amount of cash towards a purchase? Cash in your pocket is power? Do you have cash set aside for an emergency fund or is $15k all you have?
Based on what you have stated about your finances and your lack of a definitive choice in your next backhoe I would recommend taking the below path:
1. sit on the cash;
2. Reduce /eliminate all the debt you can. If you haven't touched it or used it in months or a year sell it now;
3. Rent everything you can find. If you think the make/model is not right for you rent it anyway, at least for a short period of time.
The above gives you an emergency plan since people get sick and machines break. By working on getting out of debt you are getting stronger financially w/o worrying about the scheme called a credit score, and by renting you are able to experience first hand what you do like and need vs. what you never use or hate on a backhoe. Once you have that figured out and are better off financially you could look at the rent to own or some other program based on an experienced decision.
Keep in mind the rental route may cost you more in the long run but you are not stuck with repairs, a machine you don't like or even a machine if you have a week off from work. Nothing wrong with a machine just sitting there not making money, if it's paid for.
All of the above is just my opinion. I'd be interested in knowing what backhoe you ultimately choose and why. Good luck.
From a finance standpoint, have you checked with any small town banks where people may know you personally? You may be able to get a business loan on some amount.
From a power standpoint, have you considered reducing or eliminating debt before buying anything? Have you considered using a lesser amount of cash towards a purchase? Cash in your pocket is power? Do you have cash set aside for an emergency fund or is $15k all you have?
Based on what you have stated about your finances and your lack of a definitive choice in your next backhoe I would recommend taking the below path:
1. sit on the cash;
2. Reduce /eliminate all the debt you can. If you haven't touched it or used it in months or a year sell it now;
3. Rent everything you can find. If you think the make/model is not right for you rent it anyway, at least for a short period of time.
The above gives you an emergency plan since people get sick and machines break. By working on getting out of debt you are getting stronger financially w/o worrying about the scheme called a credit score, and by renting you are able to experience first hand what you do like and need vs. what you never use or hate on a backhoe. Once you have that figured out and are better off financially you could look at the rent to own or some other program based on an experienced decision.
Keep in mind the rental route may cost you more in the long run but you are not stuck with repairs, a machine you don't like or even a machine if you have a week off from work. Nothing wrong with a machine just sitting there not making money, if it's paid for.
All of the above is just my opinion. I'd be interested in knowing what backhoe you ultimately choose and why. Good luck.
High Speed Dirt
Member
I have come here looking for info on my first back hoe so I don't have experience there but do have experience in the other matters.
From a finance standpoint, have you checked with any small town banks where people may know you personally? You may be able to get a business loan on some amount.
From a power standpoint, have you considered reducing or eliminating debt before buying anything? Have you considered using a lesser amount of cash towards a purchase? Cash in your pocket is power. Do you have cash set aside for an emergency fund or is $15k all you have?
Based on what you have stated about your finances and your lack of a definitive choice in your next backhoe I would recommend taking the below path:
1. sit on the cash;
2. Reduce /eliminate all the debt you can. If you haven't touched it or used it in months or a year sell it now;
3. Rent everything you can find. If you think the make/model is not right for you rent it anyway, at least for a short period of time.
The above gives you an emergency plan since people get sick and machines break. By working on getting out of debt you are getting stronger financially w/o worrying about the scheme called a credit score, and by renting you are able to experience first hand what you do like and need vs. what you never use or hate on a backhoe. Once you have that figured out and are better off financially you could look at the rent to own or some other program based on an experienced decision.
Keep in mind the rental route may cost you more in the long run but you are not stuck with repairs, a machine you don't like or even a machine if you have a week off from work. Nothing wrong with a machine just sitting there not making money, if it's paid for.
All of the above is just my opinion. I'd be interested in knowing what backhoe you ultimately choose and why. Good luck.
From a finance standpoint, have you checked with any small town banks where people may know you personally? You may be able to get a business loan on some amount.
From a power standpoint, have you considered reducing or eliminating debt before buying anything? Have you considered using a lesser amount of cash towards a purchase? Cash in your pocket is power. Do you have cash set aside for an emergency fund or is $15k all you have?
Based on what you have stated about your finances and your lack of a definitive choice in your next backhoe I would recommend taking the below path:
1. sit on the cash;
2. Reduce /eliminate all the debt you can. If you haven't touched it or used it in months or a year sell it now;
3. Rent everything you can find. If you think the make/model is not right for you rent it anyway, at least for a short period of time.
The above gives you an emergency plan since people get sick and machines break. By working on getting out of debt you are getting stronger financially w/o worrying about the scheme called a credit score, and by renting you are able to experience first hand what you do like and need vs. what you never use or hate on a backhoe. Once you have that figured out and are better off financially you could look at the rent to own or some other program based on an experienced decision.
Keep in mind the rental route may cost you more in the long run but you are not stuck with repairs, a machine you don't like or even a machine if you have a week off from work. Nothing wrong with a machine just sitting there not making money, if it's paid for.
All of the above is just my opinion. I'd be interested in knowing what backhoe you ultimately choose and why. Good luck.
Thanks for the reply . I am debt free , I pay fairly high rent on a beautiful place on the lake. I have 15 k for tractor money and an additional 10 k in savings and growing every payday . I understand the tractor rent ideal. I was hoping to not have to
do so, the past year I was renting a truck and trailer to haul the backhoe and those cost over the year would had made monthly payments on a tractor, truck and trailer, granted I still made a lot of money doing this , I now feel I could had made a better choice . As far as what backhoe to buy it is a toss up and will probably come down to the best deal I can find, I have only had a newholland 555e. I don't see any complaints about case 580s, the cats 416-420s sound solid to others but pricey parts and special tools required. I have found a few deals but the backhoes that have been an option for me have not had wet kits. I must have a rock breaker in my area or forever rent the equipment to do so, 7/10 jobs require rock busting . No small town banks available. I went threw a nasty divorce several years ago that left me with basicly a melt down of credit . I'm now working in the oilfield 100+ hours a week to fund my buisness plans . If I have to continue this back breaking going days at a time without sleep line of work to pay in full than it is what it is then that's my plan. I would rather have another option , I feel I can pay for this faster running my own backhoe and dump truck than how I'm doing this now. I have had a few people suggest starting with a dump truck to begin the buisness and then buy a backhoe once stable , guess that's another subject . I have some money saved and I am ready to make a move , but not to the point where I make a critical mistake and cripple my future . I will sit patient until I feel comfortable and confident in my decision.
do so, the past year I was renting a truck and trailer to haul the backhoe and those cost over the year would had made monthly payments on a tractor, truck and trailer, granted I still made a lot of money doing this , I now feel I could had made a better choice . As far as what backhoe to buy it is a toss up and will probably come down to the best deal I can find, I have only had a newholland 555e. I don't see any complaints about case 580s, the cats 416-420s sound solid to others but pricey parts and special tools required. I have found a few deals but the backhoes that have been an option for me have not had wet kits. I must have a rock breaker in my area or forever rent the equipment to do so, 7/10 jobs require rock busting . No small town banks available. I went threw a nasty divorce several years ago that left me with basicly a melt down of credit . I'm now working in the oilfield 100+ hours a week to fund my buisness plans . If I have to continue this back breaking going days at a time without sleep line of work to pay in full than it is what it is then that's my plan. I would rather have another option , I feel I can pay for this faster running my own backhoe and dump truck than how I'm doing this now. I have had a few people suggest starting with a dump truck to begin the buisness and then buy a backhoe once stable , guess that's another subject . I have some money saved and I am ready to make a move , but not to the point where I make a critical mistake and cripple my future . I will sit patient until I feel comfortable and confident in my decision.
Construct'O
Senior Member
My thought if you are looking for a machine with the wet kit for a breaker, then it is going to be hard to find some thing that hasn't been already beat on because of running a breaker.Might be better to look at a nicer machine without the wet kit then add it.
I know that isn't that easy or cheap either.Good luck
I know that isn't that easy or cheap either.Good luck
Ya I hear and understand that . I have greatly considered that . I have been trying to get a quote from cat for a week on parts and labor on a 420 d I have been looking at. So far I can't get a solid response so I'm not sure what figure I'm looking at for the wet kit, any advise from someone who may know would be helpful